CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Sa
Established in 1980, Chandos Construction (Chandos), a Canadian general contractor, prioritized
inclusivity, collaboration, and innovation. As the largest B Corporation–certified commercial builder in
North America, Chandos aimed to create a legacy and promote shared prosperity through employee
ownership. Jen Hancock, vice-president of Collaborative Construction at Chandos and a driving force for
sustainability, championed initiatives such as lean integration and waste diversion policies. In September
n
2023, Hancock prepared for a meeting with the project management team to propel sustainable construction
tio
initiatives forward. She aimed to advance Chandos’s sustainable construction and believed that integrated
project delivery (IPD) could revolutionize the industry, aligning with the company’s goal of achieving net
zero by 2040. Despite challenges in wider IPD adoption and collaboration on smaller projects, Chandos
lu
saw an opportunity to lead by emphasizing both environmental and human health aspects.
The difficulty in garnering buy-in from competitors stemmed from this dual challenge of shifting to a more
So
collaborative and sustainable model while highlighting the often-neglected aspect of environmental human
health. The slow progress in sustainability initiatives within the construction industry highlighted a gap that
Chandos aimed to fill, setting new standards and solidifying its pioneer status. Widespread IPD adoption
among industry leaders was crucial for success, challenging competitors to shift toward a more collaborative
and sustainable model. Chandos recognized that this holistic approach was essential to overcome industry
inertia and drive positive change. The imminent meeting represented a pivotal moment, serving as a critical
juncture for translating these aspirations into reality and confronting industry-wide challenges.
OBJECTIVES
• Understand the differences between traditional construction approaches and IPD concerning both
sustainability and public health.
The Case Solution Starts From page 7
,• Examine lean construction, the Leadership in Energy and Environmental Design (LEED) rating system,
and B Corporations.
• Apply stakeholder theory and its importance to corporate social responsibility (CSR) and sustainability.
• Recognize sustainable supply chain implications.
• Integrate the United Nations (UN) Sustainable Development Goals (SDGs), the Inner Development Goals
(IDGs), and environmental, social, and corporate governance (ESG) into an organizational strategy.
e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. Who are Chandos’s priority stakeholders?
2. Why is lean construction, the LEED rating system, and being a certified B Corporation important to Chandos?
3. Identify key considerations for Chandos to structure its supply chain to ethically and sustainably source
materials.
The Case Solution Starts From page 7
,4. Identify and describe how the UN SDGs are relevant to Chandos.
5. How can Chandos “go deeper” and apply the IDGs to its purpose-driven strategy?
6. Apply the various issues related to ESG practices to Chandos.
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 7
, e
2. Why is lean construction, the LEED rating system, and being a certified B Corporation important
to Chandos?
pl
Lean Construction
m
Lean construction is a process used in project delivery using IPD methods to maximize shareholder value
while reducing waste, with an emphasis on collaboration between teams on a project. With a focus on open
Sa
communication among stakeholders, including owners, architects, engineers, and contractors, lean
construction enhances productivity and minimizes misunderstandings. Moreover, it leads to improved
quality, safety, and client satisfaction, as projects are completed efficiently, within budget, and with high
standards. Lean construction also aligns with sustainability goals, emphasizing resource efficiency and
n
waste reduction, contributing to a more environmentally responsible construction process. By fostering a
culture of innovation, continuous improvement, and adaptability, it enables construction teams to respond
tio
effectively to changes in project requirements. This, in turn, provides a competitive edge in the market and
lu
So
The Case Solution Starts From page 7
,6. Apply the various issues related to ESG practices to Chandos.
The ESG framework serves as a tool for stakeholders to assess management of risks and opportunities based
on ESG factors. The environmental factor focuses on the preservation of the natural world, encompassing
concerns such as climate change, energy efficiency, and pollution. Social factors encompass various aspects
related to people and relationships, including gender and diversity, data protection and privacy, and human
rights. Lastly, governance factors encompass the standards that govern the operation of a company,
including board composition.
ESG has emerged from the concepts of corporate sustainability and corporate responsibility, which gained
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 7
, EXHIBIT 1: CAROLL’S PYRAMIDAL MODEL
Philanthropic
Be a good
responsibilities
corporate citizen .
Ethical
responsibilities
Be ethical .
Legal
responsibilities
Obey the la .
e
pl
Economic
responsibilities
m
Be profitable.
Sa
n
tio
lu
So
The Case Solution Starts From page 7